Letters to the Editor

Sept. 6, 2019 8:00 pm ET

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Investing in Biotech

To the Editor:

I think the idea of drugs using messenger RNA to cure diseases can be the next big development for biotechs (“Biotech’s Next Revolution…if It Works,” Cover Story, Aug. 30). But since these drugs are in their early stages, I would have to see more positive trials showing that they work. After reading this article, I will buy Merck, which has made investments in this technology and has a strong pipeline of other drugs if this happens to fail.

Martin Blumberg

Melville, N.Y.

To the Editor:

If Zolgensma, which is gene therapy for spinal muscular atrophy, costs $2 million per patient, then I can’t imagine what mRNA therapy will cost and why the system isn’t already bankrupt with the number of immunotherapies prescribed for psoriasis, melanoma, etc. It’s not like we’re Dubai.

Dr. David J. Gross

St. Augustine, Fla.

To the Editor:

Investing in any cutting-edge life-sciences company is a gamble, pure and simple. So, let horse racing be your guide and “box the trifecta.” Purchase a basket of mRNA, biotech, and genomic stocks, and your chances of picking a winner will skyrocket.

Stephen Axel

La Jolla, Calif.

401(k) Options

To the Editor:

Sarah Max does a great job illustrating the various options employees have with their old 401(k)s. (”Don’t Make These 401(k) Mistakes When You Leave Your Job,” Aug. 30). It’s important for folks to understand their choices and to consider them carefully.

That said, the best option can be to roll over the funds into an individual retirement account. Otherwise, investors often procrastinate and end up with many old 401(k) accounts at former employers.

This causes a myriad of planning challenges, including investment overlap between various portfolios, inappropriate overall asset allocation, lack of financial organization, and difficulty coordinating with other parts of one’s financial life (tax, estate, etc.).

Admittedly, by rolling over the funds, investors may lose out on some positives, such as institutional pricing, the ability to take out loans, and access to some nifty tools through their old 401(k) plans. However, those positives are generally outweighed by the aforementioned considerations, which are far more important to achieving one’s financial objectives.

Jonathan I. Shenkman

West Hempstead, N.Y.

Cboe Strategies

To the Editor: The tactic of selling puts on Cboe with strikes just below the stock’s market price appears to be great for those who are confident that their outlook is the correct one (“How to Bet on a Stock Selloff and a Surge in Volatility,” Striking Price, Aug. 30). I’m not so sure. As a result, I would consider selling puts on Cboe with strike prices below $110, just in case the stock is assigned to me. And if the stock is assigned, I would own shares in the company at a good price with a dividend payments. In addition, the company has a promising future when one considers all of the data that it collects.

Benjamin Davis

On Barrons.com

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